FX.co ★ Iron Ore Holds Steady on Firm Demand

Iron ore futures remained steady around CNY 715 per tonne on Monday, maintaining proximity to a one-month peak driven by expectations of robust short-term demand from China's market, the largest globally. Industry data continued to reflect strong steel production activities, with metrics such as hot metal output and average blast furnace capacity utilization remaining high. Contributing to the positive outlook, total iron ore inventories at Chinese ports decreased to 133.6 million tons, alongside a seventh consecutive weekly drop in steel stockpiles, indicating sustained downstream consumption. Nonetheless, wider macroeconomic concerns remained prevalent. Official reports highlighted that China's manufacturing sector experienced contraction for the third consecutive month in June, affected by rising price competition, subdued consumer demand, and increased US tariffs. Additionally, the ongoing property sector challenges and uncertainties regarding US-China trade relations further complicated the economic forecast.